Tenants First Scattered Portfolio REOI: Single and Multi-family Houses
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1 Tenants First Scattered Portfolio REOI: Single and Multi-family Houses 1. Background City Council adopted the Tenants First Phase 1 Implementation Plan on July 4, The following recommendation was approved through that process: City Council direct the continued implementation of strategies and directions adopted in 2012.EX23.4 "Putting People First, Transforming Toronto Community Housing - Special Housing Working Group's Report", and authorize the Deputy City Manager, Cluster A to issue a Request for Expressions of Interest to the non-profit, co-op and land trust sectors seeking interest, service models and business cases for the operation of the 684 scattered social housing properties, including Agency Houses and Rooming Houses and to report with a recommended strategy by the end of 2017, such Request for Expressions of Interest to include any properties currently undergoing or requiring an Official Plan Amendment. (Note: number has increased to 693 with the inclusion of those undergoing or requiring an Official Plan Amendment) Toronto Community Housing (TCHC) and the City of Toronto are issuing this joint Request for Expressions of Interest (REOI) seeking information about the interest of non-profits, cooperatives, land trusts and other community agencies in the operation of 693 houses. This REOI gives the non-profit sector the opportunity to provide input into the future of TCHC's scattered portfolio. Two separate open REOIs have been issued for the operation of a total of 693 houses: 647 single and multi-family houses and 46 rooming houses. (Refer to Appendix 1 for an overview of the single and multi-family houses portfolio). Community agencies that are currently leasing TCHC properties should identify this in their submission. a) Purpose To assess a range of possible innovative service delivery models, funding models and housing operators for TCHC's scattered portfolio. The information gathered through this process will inform the recommendations to City Council in December 2017, and based on Council's direction, may lead to the issuance of an RFP in b) Intended outcomes of the transfer of operations of the scattered portfolio - Well-operated and maintained housing - Quality customer service - Affordability of units now and in the future - Preserving units that accommodate large families - Remove the cost of maintaining these properties from the larger TCHC portfolio - Strengthen the non-profit, co-operative and land trust sectors 1
2 c) Participants Non-profits, co-operatives, land trusts and other community agencies (or partnerships of such organizations) are invited to respond to this REOI. d) Response Requirements Written response by noon September 25th providing information as outlined in Section 4. Respondents are also welcome to include additional information for consideration. Interviews of a representative sample of participants may occur. Participating in the REOI is not a requirement for participating in future RFPs. 2. Important Dates Date August 18 th September 15 th 1:30-3:30 September 25 th noon Milestone REOIs issued Information Session; 2 nd Floor City Hall Deadline for submissions The Review Panel will consist of TCHC tenant representative(s), as well as staff from TCHC and the City of Toronto. 3. Basic Assumptions When responding to this REOI the following assumptions should be used in developing a submission: a) The City will provide rent supports so that current RGI tenants continue to live in their homes and continue to receive a subsidy, for as long as they continue to qualify for a rent subsidy. b) Many tenants in rooming houses require supports. c) Units that have rent supports will be a part of the City's service level standards as defined under the Housing Services Act. d) A variety of ownership models/ tenure are possible. e) Housing providers will use the City of Toronto's Access system to fill vacancies for rent supported units. f) Once an RFP has been issued (expected date 2018) and proponents have been selected they will be required to sign an Operating Agreement with the City of Toronto. g) Regardless of ownership model, properties must be maintained as affordable housing in perpetuity. h) Preference is for proponents that demonstrate financial and operational expertise and capacity that will relieve the financial pressure from TCHC and the City of Toronto. i) In the case of disposition of any properties first right of refusal will be given to the City of Toronto. j) Organizations will have the ability to leverage the asset to fund capital repairs. 2
3 4. Submission Requirements a) Portfolio Interest - Identify specific properties and/or groups of properties that your group is interested in operating (refer to Section 5 for Property Details). - Provide a rationale for how these properties will fit into your organization and your current housing portfolio and why they should be treated as a group. - Identify any properties that you would not accept as part of your management portfolio. b) Service Model proposal that includes: - Outline of a proposed tenant consultation strategy that would be implemented prior to assuming operations of the properties - A brief description of a proposed service model that includes the plan to: o engage current tenants at the commencement of operating the property, as well as ongoing engagement activities o employ an eviction prevention approach o deliver high quality service to tenants using a customer service model that ensures tenants receive timely service Answers to the following questions: - How do you work with local community services and other housing providers? - How will you measure the success of the housing program? - What staffing complement is required to deliver the service model? - How would you describe your maintenance/asset management program? - What is your approach to managing social housing? - What is your experience with providing customer-service focused housing to a diverse tenant group? c) Business Case that includes: - Preferred model and rationale of assuming property - Annual cost of operations for the selected properties - Most recent Annual Report - Funding sources including: required City funding and other expected sources of revenue (please note: we have provided CMHC Average Market Rent for each property for reference) - Timeline of assuming operation of portfolio if RFP awarded in June 2018 d) Proponent Information (For partnerships include information for each individual organization) - Organization name, address, contact information - Board member list - Senior staff list - Organization name, contact information of any partner or consortium involved with this proposal - Existing portfolio details of proponent or partner - Sources of revenue 3
4 5. Property Details a) Complete list of building statistics including addresses, size of properties, year built and unit mix b) Rent revenue estimates by property based on CMHC Average Market Rent data c) Relevant operating expenses by property d) Information on outstanding mortgages, terms and amortization e) Current Facility Condition Index (FCI) and projected 5 Year Capital expenditure by property 6. Maps (Available on website) Map of the City of Toronto showing all Single and Multi-Family Houses and CMHC zone groups Map of houses in Former City of Toronto CMHC zones Map of houses in Etobicoke CMHC zones Map of houses in York CMHC zone Map of houses in East York CMHC zone Map of houses in Scarborough CMHC zones Map of houses in North York CMHC zones 4
5 APPENDIX 1: SINGLE AND MULTI-FAMILY HOUSES PORTFOLIO OVERVIEW The portfolio contains of 647 properties and 731 units with 505 units (69%) consisting of 3-bedroom units. The portfolio contains 336 properties (52%) built years ago and 183 properties (28%) built more than 100 years ago. The portfolio consists of 820,144 square feet (SF). The majority of properties in the portfolio are between 1,000SF and 1,600SF with 531 properties (82%) in this range. The smallest property is 724SF and the largest property is 5,638SF. The average property size is 1,268SF. 629 units (86%) are rent geared-to income (RGI), while the remaining 102 units are market-rent units. 5
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